GnosisDAO has accepted a plan to retire Gnosis Chain’s standalone Layer 1, a shift that may unlock roughly 350,000 staked GNO.
Below GIP-153, Gnosis Chain will develop into a zero-knowledge-proven Ethereum Financial Zone rollup that settles on to Ethereum each block. The community will finally retire its unbiased validator set and inherit safety from Ethereum validators as a substitute.
That change would unlock about 350,000 GNO at the moment dedicated to staking, equal to roughly 27% of the token’s circulating provide. The tokens are already counted as circulating provide, however ending staking would make them liquid once more and take away their present position in securing Gnosis Chain.
GNO rallied 10% to as excessive as about $136 across the governance determination, its highest stage since Could, CryptoSlate knowledge confirmed. The transfer got here regardless of the prospect of a large enhance in liquid GNO and mirrored investor consideration on Gnosis’ deeper integration with Ethereum.
The approval is a direction-level mandate fairly than a remaining launch determination. GnosisDAO didn’t approve funding or a accomplished technical design, and the primary EEZ model is focused for round December 2026 or January 2027, relying on required infrastructure being prepared.
GNO loses its staking position as Gnosis turns to Ethereum
The transition may also power Gnosis to rethink GNO’s economics after staking disappears.
Gnosis at the moment pays validator rewards from its treasury as a result of community charges cowl solely a fraction of its safety prices. GIP-153 estimates that mannequin dilutes non-stakers by about 2.3% yearly. As soon as the validator set is retired, the staking subsidy would finish and Gnosis intends to hyperlink GNO as a substitute to income generated by the rollup.
The precise mechanism stays unresolved. Gnosis is contemplating choices together with payment sharing or GNO buybacks tied to community income, with a separate governance proposal anticipated after the economics of working the rollup develop into clearer.
The broader wager is that Gnosis may give functions direct entry to Ethereum’s liquidity with out requiring customers to bridge belongings between separate networks. Its deliberate synchronous composability would permit a Gnosis contract to name an Ethereum contract and use the consequence throughout the similar atomic transaction.
Martin Koeppelmann, Co-Founder and CEO, informed CryptoSlate:
“Ethereum will not be scaling into one financial system; it is scaling into 100 islands. This proposal is Gnosis selecting the opposite path. After the transition, anybody with a mainnet pockets will have the ability to use a Gnosis dapp in a single transaction, and a Gnosis account will have the ability to use something on Ethereum. Identical block, no bridges.”
Notably, a number of DeFi initiatives, together with Aave, Spark, Fluid, CoW Swap, Secure, Centrifuge and different initiatives have dedicated to constructing consumer-focused merchandise within the atmosphere.
The transition comes with a decentralization trade-off. Gnosis Ltd. is predicted to function the sequencer that originally orders transactions and produces blocks, whereas proofs and settlement transfer to Ethereum. GIP-153 explicitly describes the transfer towards a much less decentralized execution layer as deliberate.
For GNO holders, the change subsequently replaces one established supply of token utility with an unfinished income mannequin whereas concurrently releasing a big block of staked tokens again into liquid markets.
